Precious Metals Extend Decline as Treasuries Shine

October 29, 2009



Precious metals prices fell further yesterday as high demand was reported at US Treasuries auctions this week. The decline also coincided with news of Russia's plan to sell 1.6 M oz. of gold, taking advantage of higher prices.

Top Takeover News

Gold Reserve (GRZ), previously the takeover target of Russian minerals giant Rusoro, announced that its Brisas property has been seized by the Venezuelan government.

Best High-Grade Precious Metals Discovery

Among recent gold discoveries, Great Basin Gold's (GBG) stood out most. Drilling at its Hollister, Carlin Trend, Nevada property showed bonanza gold grades of up to 2,156 g/t. Great Basin also announced that its Hollister property is producing 60,554 oz. of gold at a lower average cash cost of just $ 324/oz.

Top Coin News

The Austrian mint, the world's largest producer of pure gold coins, Announced today that it will cut production by nearly a third over the next year. Sales of coins were up over 14% and total bullion sales were up 23% this year

In the U.S., over 110,000 2009 American Buffalo gold coins have been sold since first released on October 15. In just two weeks' time, coin sales amounted to nearly 64% of the total sales from all of last year.